A Look Inside Generation Y

Generation Y—or simply Gen Y or “millennials” —is an interesting bunch. I should know. If a driver’s license counts, I’m technically a card-carrying member.

A walking paradox, Gen Yers—the folks born from 1979 to 1994, just following Generation X—are notorious for having their cake and eating it, too, and then asking for seconds. They want flavor, quality and ambiance, yet they want to stretch their dollars as far as possible. They want vegetarian and organic options, as well as comfort foods.

The millennials are hyper-taskers. Simultaneously eating lunch, surfing the Web, text messaging, watching TV and listening to an iPod is a social norm, and they expect foods and beverages conducive to their lifestyle. This translates into inexpensive, portion-controlled, prepackaged foods that require little to no thought, while still maintaining an interesting flavor profile.

According to Y-Pulse, Chicago, the major factor affecting meals purchased by Gen Y was price (45%) followed by convenience (34%). This reflects a typical college student’s budget and the need for backpack-friendly products—i.e., beverage bottles must be sealable—that are easy to find.

These sometimes disparate desires suggest a seemingly unappeasable customer base. Yet, as with most bases—whether customer or culinary—we unveil its true essence if we boil it down enough.

LOSE THE HYPE—KEEP IT FRESH

Gen Yers filled their lifetime quota of advertising saturation by the time they reached grammar school. They know when they are being targeted, and then quickly reject or embrace products (products that try too hard to fit in are dubbed “imposters”). Gen Yers gravitate less toward items blatantly aimed at them, and more toward products they see as offering a personal benefit.

Products must convey a sense of “freshness.” Gen Yers associate “freshness” with “quality.” According to Y-Pulse data, fresh, premade items account for 47% of sales in campus convenience stores, while made-toorder items comprise another 45%.

“It’s not only about what the packaging looks like... It’s also about what it costs, if it’s easy to find and if it’s fresh and tastes good,” says Kadi Smith, an undergraduate at Grand Valley State University, Allendale, MI. “You can tell me anything you want about the product, but if it can’t ‘walk the walk’ by looking and tasting fresh and appetizing, then forget it.”

BRANDING SOCIAL IDENTITY

In order for a product to succeed with Gen Yers, marketers and product developers must make an emotional connection with their customers. Gen Y customers cultivate their sense of social identity from their peers, and from their chosen brands.

They must embrace the lifestyle conveyed by the brand (i.e., Starbucks and iPod). For this demographic, self-expression and individuality come through product purchases.

Gen Y customers take into consideration what being seen with the product will convey to their peers. Do they want to align themselves with this brand or product and the manner in which it is advertised?

One of the most-stunning examples of this is the Starbucks phenomenon. The environment within Starbucks, the savvy connotations attached to the brand name, and the way being in a Starbucks makes customers feel about themselves has as much, if not more, to do with why Gen Yers frequent the chain as the products offered.

Appearance also holds merit in the mind of a typical millennial—and they’re willing to experiment with new products. According to Y-Pulse research, nearly 47% of students surveyed indicated experimenting with foods is a priority. “I look for the colorful, futuristic-looking bottles and packaging,” says Emily Erserbacher, an undergraduate at Michigan State University, East Lansing. “When something on the shelf has enough visual appeal and mystery to it to make me stop in my tracks and check it out, chances are I’m buying it. It needs to pop.”

A SENSE OF SOCIAL CONSCIOUSNESS

“College students often evidence a greater understanding of characteristics such as ‘locally grown,’ ‘organic,’ ‘sustainable’ and ‘fair trade,’” comments Sharon Olsen, CEO, Y-Pulse. “Eating organic is important to 25% of college-age students surveyed, while another 15% feel the same toward fair-trade goods.”

A Chicago-based Asian chain, Big Bowl, recently performed an environmental makeover. It now sources heirloom pork from small producers, direct-trade organic coffee and local or regional produce, among other green-leaning initiatives.

One consequence of these changes was the increased interest of the servers in the front of the house—a group that inevitably includes Gen Y members—in items like a fried rice dish created with heirloom pork. “They couldn’t believe the flavor,” says Dan McGowan, president, Big Bowl. “They’d never had pork like that. And they love the idea that it was hormone-free, antibiotic-free and from a small farm.” This enthusiasm from Gen Y servers carries over into their work, thereby generating a good level of peer confidence in the chain’s products.

Millennials are naturally drawn toward goods and services they can feel good about purchasing. This could translate into products packaged in recycled or organic materials, fair-trade, the local economy, etc. Much like the Baby Boomers, Gen Y wants to feel like they’re making a difference.

A HEALTHY FOCUS

According to a recent Y-Pulse survey of college students, nutrition is the third-most-important factor in purchasing meals following price and convenience. Moreover, nutritional benefits—including both health and energy—were the most-important attributes of foods purchased from campus convenience stores.

“The majority of students want to eat healthily,” says Marya Bruning, R.D., University of Montana Dining Services, “but they won’t do so if it’s impractical. Gen Y students perceive that they don’t have enough time to eat, let alone think about what they’re eating and whether or not it’s a healthy choice. Manufacturers should focus on healthful foods and snacks that are travel-friendly and come in single-serving sizes.”

Gen Yers naturally gravitate toward foods and beverages with added value, such as energy drinks to boost vigor; waters and beverages that claim to enhance memory and focus; and other products promising to rejuvenate, ease stress, enhance immunity or boost other aspects of well-being.

The realm of eating healthy is where the Gen Y paradox comes into play. While students want to know that the foods they are eating are properly portioned and full of healthy ingredients, there is also a value need that must be met.

Y-Pulse surveyed students on their reaction to “super-size” options and found more responses at either end of the spectrum than in the middle. While some students think it’s a great value, others are turned off.

“Students who consider price to be one of the most important factors in their purchase decision perceive ‘supersize’ options to be a ‘great value’ twice as often as those for whom price is not a major factor,” says Olsen. “Similarly, price-insensitive students tend to describe ‘super-size’ options as ‘disgusting’ more than twice as often as those who are price sensitive.”

GEN WHY

The most-important attribute to keep in mind is that Gen Y is about the why and how, as well as the where and what. Why can’t the product come from local farms? How can we make it available 24/7? Where are the ingredients grown, and what kinds of pesticides are used? How does being seen with this product make me look to my peers—and feel about myself?

Gen Y holds the products they use to the same standards they hold for themselves—they must be able to do it all, with as little cost as possible, and still have energy to spare. The ideal Gen Y product is inexpensive, conveniently located, sustainably packaged, urban in appearance, chock-full of vitamins and minerals, new and interesting enough to make their peers admire them, and self-contained so that it’s safe to use near a laptop.

Oh, and—speaking for my Gen Y peers—can we have that trans-fat-free, too?

Jodi L. Smith is the marketing manager for the National Association of College & University Food Services and editor-in-chief of Campus Dining Today®.